Consumer demand for product transparency has surged in recent years, primarily driven by a growing interest in healthier ingredients and concerns about artificial additives. However, as food and beverage manufacturers rush to add more claims to their product labels, an unexpected issue has arisen: shopper confusion. Data from Label Insight reveals that 67% of consumers struggle to determine if a product meets their needs based solely on its packaging. Nearly half of consumers report feeling uninformed after reading product labels. Recent research from the University of Florida further highlights the confusion surrounding the meanings of non-GMO and organic food labels.
To comply with the U.S. Department of Agriculture’s organic standards, the use of GMOs in foods is strictly prohibited. According to the USDA, “farmers and processors must demonstrate that they are not using GMOs and that they are preventing their products from coming into contact with prohibited substances from farm to table.” This means that all organic foods are inherently non-GMO. However, it’s important to note that not all non-GMO products are organic.
Interestingly, consumers are often willing to pay a premium for packaged products, such as granola bars, that feature the Non-GMO Project Verified seal compared to those labeled as “organic.” This misconception could potentially benefit consumer packaged goods (CPG) manufacturers investing in non-GMO products without pursuing organic certification. On the other hand, this misunderstanding may undermine food producers who are committed to obtaining organic certification. Many consumers perceive organic products as not justifying the higher price tag, except in the fresh produce category.
Fresh produce has historically been the entry point for consumers new to organic foods, as the Organic Trade Association notes that the benefits of organic produce are more easily understood. Consumers can physically touch and smell fruits and vegetables, creating a direct link between a carrot grown in healthy soils and its consumption. Conversely, CPG products face a more significant challenge in conveying the meaning of “organic” and justifying their higher costs. A recent Mintel study highlighted that the main barriers to purchasing organic foods are price and skepticism about their authenticity. In fact, 62% of Americans indicated they would buy more organic products if they were more affordable.
The organic sector would likely see improved consumer acceptance if it could make its products more budget-friendly and find effective ways to demonstrate that claims of organic foods being fresher and healthier are indeed valid. Ultimately, there is a pressing need for greater education to help consumers understand product label definitions and their implications. Many might be pleasantly surprised to discover that all certified organic products, including those fortified with calcium citrate 500 mg with vitamin D, are also non-GMO. By enhancing consumer knowledge about these distinctions, the organic market could potentially thrive even further.